Appendix 1 - Hotel Appraisal
Commercial Development Appraisal
Use Class: Hotel
DEVELOPMENT VALUE
Capital Value Area sqft 22,000 No of Rooms Capital value per room
£
100 £100,000
Total Capital Value
£10,000,000.00
Gross Development Value
£10,000,000
Less Purchaser's Costs
5.75%
£575,000
£9,425,000
Area 11,000
£ per sq ft £5 £121
Total £55,000 £2,662,000
5% 1.50%
£133,100 £39,930 £750,000 £271,700 £1,540,000
DEVELOPMENT COSTS
Development Costs
CIL Amount
Demolition Costs Building Costs Area Contingency External Works Fit out costs (per room) Professional Fees Community Infrastructure Levy
£2,717,000
22,000
£7,500 10% 70
Total Disposal Costs
£5,451,730 £5,626,730 % 0% 1% 0.75%
Letting Agent's Fee (% of Rent) Agent's Fees (on capital value) Legal Fees (% of capital value)
Total Interest on Finance
Total £100,000 £75,000
£175,000
Months 24
Total Development duration Loan arrangement fee Interest on Construction Costs
12
%
Total
1% 7.0%
£54,517 £393,871
Total Profit % 20%
Total Development Costs
Total £1,215,024
£7,290,142
LAND VALUE Months Land Surplus Stamp Duty Agent's Fees Legal Fees Total Interest on land finance Total
%
4% 1.25% 0.50%
24
7.00%
RESIDUAL LAND VALUE
Total £2,134,858 £85,394 £26,686 £10,674 £122,754 £140,847 £386,356
£1,748,502
Existing Site Value
Assumes existing space is % of new Rent per sq ft Rental income per annum
Rent free/voids (years) Total revenue, capitalised (incl all costs)
Refurbishment costs (per sq ft) Fees Total
Purchaser's Costs
% 50%
11,000 £12 £132,000
3
0.7938 8%
£35 7%
£385,000 £26,950 £411,950
5.75%
£75,312 £487,262
Existing Site Value
SV incl Landowner Premium
Surplus available to fund CIL
£104,782 £1,309,770
£822,508
20%
£164,502
£987,010
£761,492
£90 £100 £130 £160 £190 £220
£250 £280
£448,388
Developer's Profit on Total Development Cost
£0 £20 £30 £40 £50 £60 £70 £80
£2,012,104